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I am purchasing/selling a business. What employment law issues should I be concerned about?

Almost all corporate transactions will have employment law implications. Before drafting any initial Letter of Intent, purchasers and vendors should seek legal counsel on the employment and labour law issues involved, including:

  • Share sale or asset sale?
  • Identity of employees and terms and conditions of employment?
  • Are there collective agreements in place? If so, what is the history of grievances and arbitration awards?
  • Retention of employees or termination before closing?
  • Is the vendor subject to the Workplace Safety and Insurance Act? If so, what is the status of claims, or re-employment obligations?
  • Occupational Health and Safety Act issues
  • Are there any human rights issues within the workplace?
  • Are there any legal proceedings or complaints against the employer?
  • Are there any benefits plans in place for employees?
  • Are there pension plans in place for employees?

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